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Spotify’s EU app update rejected by Apple over ‘new tax’

Despite the EU's $1.84B fine on Apple for anti-competitive behavior, the tech giant continues to block Spotify's app updates in defiance of regulations.

By
Shubham Sawarkar
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ByShubham Sawarkar
Editor-in-Chief
Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...
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Apr 26, 2024, 6:00 PM EDT
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Spotify readying for iOS in-app purchase return after years of fighting
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In a continued clash between the tech giants, Apple has again rejected a new version of Spotify‘s iOS app in the European Union. The reason? Spotify’s attempt to provide in-app pricing information for its users.

Spotify had submitted an updated version of its app, hoping to allow users to purchase plans directly from within the app. This move was in line with the European Union’s Digital Markets Act (DMA), which aims to create a more level playing field for digital services.

However, Apple has rejected Spotify’s update, citing the company’s unwillingness to adopt Apple’s revised “Music Streaming Services Entitlement” rules. These rules would require Spotify to pay Apple a 30% commission on any in-app purchases.

Spotify’s spokesperson, Jeanne Moran, expressed frustration with Apple’s decision, telling The Verge, “Apple has once again defied the European Commission’s decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax.”

This latest development comes despite the European Commission’s recent €1.84 billion fine imposed on Apple for abusing its dominant market position. The fine was a result of the Commission’s finding that Apple had unfairly restricted the ability of developers to inform users about alternative payment options outside of the App Store.

The clash between Spotify and Apple is not new. The music streaming service has long been a vocal critic of Apple’s App Store policies, arguing that the 30% commission on in-app purchases gives Apple an unfair advantage over competing services.

Spotify has previously filed antitrust complaints against Apple, alleging that the tech giant’s practices stifle competition and harm consumers. The company has also been a driving force behind the EU’s DMA, which aims to address these concerns.

The latest rejection of Spotify’s app update means that users in the European Union will need to go outside of the Spotify app to purchase a subscription. This could be a frustrating experience for users, who may prefer the convenience of in-app purchases.

Moreover, the continued standoff between Spotify and Apple raises questions about the effectiveness of the EU’s DMA in addressing the power imbalance between tech giants and smaller players in the digital ecosystem.

For now, Spotify users in the EU will need to navigate the inconvenience of purchasing subscriptions outside of the app, as the two companies continue to clash over the future of the digital marketplace.

This article was originally published on April 26, 2024, at 6 pm ET.


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